🇱🇻 Latvia Tax Guide - Income Tax, Corporate Tax & Special Regimes

Top income tax 33.0% effective 36.0%

Corporate tax 20.0% distributions only

PVN 21.0% standard rate

Tax residency 183 days 64 tax treaties

Latvia tax profile

Data year: 2026

Tax system: Worldwide CIT only on distributions and deemed distributions (0% on retained profits). Distributed profits are taxed at 20% CIT on a grossed-up base (divide by 0.8), equivalent to 25% of the net dividend. From 2026, companies whose shareholders are exclusively individuals may elect an alternative regime: 15% CIT (15/85) on distributions plus 6% PIT withheld on dividends paid to individuals.
Top PIT rate: 33.0% (eff. 36.0%)
Corporate tax rate: 20.0% (distributions only)
PVN: 21.0%
Capital gains tax: 25.5% 25.5% on disposals of capital assets (securities, real estate, business assets and similar). A 20% rate applies through 2027 for certain capital-gain transactions initiated before 2025 but not completed by 31 December 2024 where a gain declaration was filed.
Social security (employee): 10.5%
Social security (employer): 23.6%
Social security cap (annual): EUR 105,300
Dividend withholding: 0.0%
Interest withholding: 0.0%
Royalty withholding: 0.0%
Treaty count: 64

Personal income

Personal income brackets
Bracket min	Bracket max	Rate
EUR 0	EUR 105,300	25.5%
EUR 105,300	and above	33.0%

Participation Exemption

Days threshold: 183 days
Residency rules: Resident if declared domicile in Latvia, present 183+ days in any 12-month period, or a Latvian citizen employed abroad by the Latvian government. Residents are taxed on worldwide income; non-residents on Latvia-source income.
Exit tax: Yes Corporate exit tax under ATAD (CIT Act): charge when a Latvian company moves assets or tax residence abroad, including transfers between head office and foreign permanent establishments or on cross-border reorganisations.
CFC rules: Yes CFC rules under ATAD implementation.

VID Personal Income Tax rates (accessed Oct 9, 2026) Progressive PIT, capital gains, 3% surcharge above EUR 200,000
PwC Latvia Tax Summary (accessed Oct 9, 2026) Headline rates, NSIC cap, WHT, CIT distribution model, treaties
Finance Ministry tax changes 2026 (accessed Oct 9, 2026) NSIC ceiling, alternative dividend CIT/PIT regime from 2026
Finance Ministry tax conventions (accessed Oct 9, 2026) 64 effective double tax conventions (status 1 June 2026)

Oct 9, 2026
- Capital gains tax rate 20 25.5
- Income tax brackets updated
Refreshed 2026 rates: data year, verification date, effective top income tax rate 36%, capital gains tax 25.5%, annual social security cap EUR 105,300, WHT 0%, treaty count 64, exit tax yes, brackets and sources updated (vid.gov.lv, taxsummaries.pwc.com).

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EC Ecuador Digital Nomad Visa (Visa Nómada)	$1,446/mo
ME Montenegro Digital Nomad Residence Permit	$1,460/mo
MU Mauritius Premium Visa	$1,500/mo

GE Georgia Small Business Status (1% Tax)	1%
JE Jersey High Value Resident (HVR)	1%
UZ Uzbekistan IT Park Resident Status	1%
SO Somalia Presumptive Tax Regime (PTR)	1.5%